My experience with outsourcing (both in New England and abroad) is that the sales people are happy to make the commission, but then the implementers under-deliver as much as they can get away with. I feel this article is truly disconnected from reality.

I have travelled to more than 70 countries and have reviewed outsourcing in many of them. I find that even with the so called higher level of education areas, the low cost outsourcing is not beneficial in that their experience level and ability to adapt to new technology and advanced methods is far beyond their comprehension. It may take more time to teach them than to reap any benefits. I have also questioned the integrity of supply of the developing nations, whereas, meeting quality standards doesn't seem to meet their criterior to follow contract requirements.
No-outsourcing has not reached a level of maturity where trust and integrity can be a given. The WTO has a long way to go.

At Enginasion we provide electronics and software services to companies large and small.
All our customers outsource. Even the contract manufacturers outsource services like metal work, painting, PB board manufacturing, software, electronics, staffing ...
We typically start at the root problem or technology, developing prototypes and securing the basic technology.
Once the root technology is stable, we work with Industrial Designers to transfer the technology so they can further define the customer experience define the production process.
Contract manufacturers are the next phase bringing the product to stable, repeatable production.
Each phase has it's own artistry, engineering and logistics. Some large companies have all three phases covered in-house, however we still get calls to foster innovation. No engineering group can do everything.
People tend to want to solve the problems they know how to solve. It's natural.
Outsourcing the parts outside of our skill set is an opportunity to discover many views of the same opportunity. We all learn from each other and become better at what we do and don't do.
Working this way is satisfying and productive.